Answer to Question #137267 in Microeconomics for lauranonato

Question

Explain each of the following statements using supply and demand diagrams,
when the weather turns warmer in Manila every summer, the prices of hotel rooms in Baguio City rises.

Answer 1

Allot of people in Manila like warm temperatures during the summer thus creating a high demand for hotels in Bongui where they will be staying hence prices for the hotels will be high since an increase in demand leads to an increase in prices.